Lafayette FCU Plans To Convert To Bank
KENSINGTON, Md.- Lafayette FCU became the latest credit union to seek conversion to a mutual savings bank last Wednesday, according to the Office of Thrift Supervision.
The $340 million credit union would be the first attempted conversion since the bid by DFCU Financial, since withdrawn after a member revolt.
Lafayette FCU has a broad field of membership that serves most of Washington, the nearby community of Potomac, Md., and more than 150 select employee groups.
Richard Garabedian, an attorney with the Washington firm of Luse Gorman Pomerenk & Schick, PC, is representing Lafayette in the conversion.
Financially Ailing CU Cited For FOM Violation
TOLEDO, Ohio-NCUA last Wednesday issued a rare supervisory agreement which criticized a credit union for failing to adhere to its field of membership.
In a Letter of Understanding made public Wednesday, NCUA said the future of the financially troubled Toledo Metro FCU could be in "serious jeopardy" if it does not address numerous adverse conditions including poor loan quality, weak management and field of membership violations.
The $18-million credit union reported a loss of $380,000 and a delinquency ratio of 2% for 2005; and a loss of $96,000 and a delinquency ratio of 1.4% for the first quarter of 2006.
The supervisory agreement requires the credit union to immediately cease making any new subprime loans; or those members with more than two unpaid collection items or any unpaid charge-offs on their credit record; or members who have been delinquent with the credit union within the last six months.
In addition, the LUA will require the credit union to verify member eligibility when they join; and to review the current membership in order to document eligibility.
NCUA ordered Toledo Metro FCU to immediately close down any member accounts that do not meet FOM eligibility and to cease providing services for anyone outside their FOM.
HOPE CCU Gets Katrina Grant
JACKSON, Miss.-HOPE Community CU will receive almost $1 million in affordable housing grants from the Federal Home Loan Bank of Dallas to help in the rebuilding of Mississippi and Louisiana communities that were severely damaged or affected by the influx of refugees fleeing hurricanes Katrina and Rita last year, the FHLB said.
The awards will include $350,000 to finance construction of a 70-unit project in Biloxi, Miss.; $175,000 for a 35-unit project in Jackson; and $325,000 for a 65-unit residence in Baton Rouge, La.
The grants were part of $8.3 million in funding awarded by the Dallas bank for 58 projects in Arkansas, Louisiana, Mississippi, New Mexico and Texas, and will help create or renovate 1,500 housing units in those states.
The $100-million credit union also announced this week the opening of a branch in Biloxi. HOPE Community is an affiliate of Enterprise Corp. of the Delta, a community development organization.
Bay State CU Offers 10% Option
LOWELL, Mass.-M/A Com FCU has jacked the rate up on its seven-month CD all the way to 10% APR.
The rate, double that of the credit union's current seven-month product of 3.4%, is being offered for $1,000 deposits.
Only 300 of the special CDs are being offered, and one to a member.
The $20-million credit union was founded by employees of M/A Com and now serves all residents of the city of Lowell.